lost him yesterday. and we miss him. >> we do. he was a huge deal when i was 11, 10, 11 years old, so were the monkeys. you saw some of the repeats probably, and it's a shock when someone -- having been at that impressionable age he was a real -- >> over 100 million albums that they sold. >> sold more in i think one of those years than the beatles and the stones combined. and we're going to talk about it more in shares. but -- >> plus he was only 66 and that's the shocker, too. >> were were you a monkees? >> yeah. ♪ hey, hey, we're the monkees i used to watch a rerun. >> culturally you'll be at a loss for our discussion here. it's okay 0. we'll get by.

>> should i mention whose birthday ta? justin bieber. just to give you a generational -- >> carole king wrote songs for this guy. don kirscher in put an ad after the beatles came an ad in variety looking for four crazy guys and they manufactured -- they didn't come up with the music. i don't know if they played the instruments. they had to learn how to play the instruments and insisted on playing them on tour and they talked back to kirscher in so he invented the archies which was animated so they couldn't talk back, i don't think. he had a heart attack and also, i think, strikes home a lot of baby boomers on mortality. >> 66. >> just die in your sleep, i guess, of a heart attack. >> we'll play more of the music. >> what was fascinating to me is in 1967 their opening band on tour was --

>> i can can't believe this. >> jimi hendrix. the jimi hendrix experience opened for the mon can kiss. >> we'll play more and talk more about it. also, though, stocks turning in their best february in 14 years. for the month the dow was up 2.5%. the s&p added 4.1%. the nasdaq up by, get this, 5.4%. crazy month. maybe the leap day helped. it has been a week of milestones for the markets, though. the dow closed above 13,000 and then yesterday the nasdaq briefly touched 3,000. that's the first time since the collapse of the dot-com boom. by the end of the day, all three of the major averages giving back a little bit of ground because of what we heard from ben bernanke. we'll be getting personal income in spending and then at 10:00 ism manufacturing and construction spending. ben bernanke will go back one

more time to capitol hill. the recovery continues but it's been modest. after minimal gains in the first half of last year real gdp increased at 2.25%. the limited information available for 2012 is consistent with growth in coming quarters. >> chairman bernanke will appear before the senate banking committee. edmunds.com expects sales to come in above and sales are seen up 10% from a year ago helped a bit by an extra day in february for leap year. we talked about that leap year, joe, a lot. retailers reporting same store sales today. analysts say comp sales are on

track to have their best finish since september, boosted by valentine's day and presidents' day sales. that would be a good present. >> i wonder if the extra day helps. >> definitely on the comps but a little love on valentine's day. i didn't know cars were presents on valentine's day. >> me neither. >> maybe i'm cheap on valentine's day. i'm doing chocolates. also, warmer weather normally gives shoppers motivation to buy spring apparel. and separately new real estate scouts are coming in this morning. foreclosed properties accounted for the smallest slice of home sales in three years. reality track reports the decline coincided with a sharp drop in foreclosures as banks wrestled with robo signing issues. let's check on the markets this morning. we may challenge 13,000. we're going to try to assault -- it's great.

went back below. >> see if we can do it again. >> woohoo for a news organization. we're indicated up just fractionally today. but we closed there once so no one will really talk about it but we're right around that level. we'll see if we move above the 13,000 level or whether that ends up being something of maybe in the short term pop. let's look at the oil board which also was interesting yesterday. and as rick alluded to in a lot of the markets, looked like there were fat finger trades. i don't know what went on yesterday, but big moves in the yield. >> saw a 105. >> you saw how gold pulled off at one point. >> part of it was bernanke was talking, too, through all kinds of payoffs. >> didn't really necessarily say anything that would explain a lot of these moves. the dollar which we were at 1.34 not too long ago and gold had a

volatile session. we were almost back to 1,800. global market news this morning, china manufacturing picked up pace in february. a new survey today shows that china was helped by strength in new orders and export demand and production but inflation pressures continue to be a concern in that country. in news out of europe today, greece's parliament approving new reforms to the country's struggling pension system early today. this is the latest action required to secure new international rescue loans. and stave off a greek bankruptcy. eurozone manufacturing, by the way, contracting in february for the seventh straight month. a business survey shows that factories are facing some of the toughest conditions on record. >> time for the global markets report. ross westgate is standing by in london. ross, it's a good middle name.

how are you doing? >> it's a good one, isn't it? it is my middle name as well, andrew. it's just that i use it first. >> stop the presses. what's the real first name then? >> alexander. >> really? you're alex. >> we have some real breaking news. >> we have alex ross and andrew ross. >> this is the first on cnbc. we should be running headlines at this point. >> so there we go. we share the same second name. it's good you don't use it as well because that would be really confusing. ahead of the u.s. open right now and we are weight ed to the upside for european stocks up near the session high some three hours into the trading day. around 6 to 4 advancers outpacing decliners. we've been helped again by pretty solid auctions out of spain and france again this morning. xetra dax up 6% is for the month of february. up another half percent today. the ftse mib about 1.29%.

so the focus once again on the bond markets, we saw yields in spain and italy coming lower post ltro and they've started to head lower again today. spanish ten year is now down to 4.93%. yesterday over five as the ten-year french money is down. good auction in france as well. the key thing here, they raised the total amount in both france and spain and in spain they have raised 14% of their total targeted borrowing for 2012. they already have 40% of the money. they had three issues, the two, three, and four years. bid to cover is solid. yields on those respective issues all lower than they were at previous auctions. so that's just kept the feel good factor going through, the first auctions post the ltro yesterday. but still a lot of doubt it will spill is over, suggesting most of the banks are just parking the money to pay for funding

needs. it was up at three-month highs. still sort of suffering from those losses. euro yen had the best. the yen, probably put it that way, the worst month in if february against the euro for around about 11 years and that was more to do with the bank of japan coming out with more easing discussions. not bad manufacturing survey today. we look forward to the one in a couple of days, a bigger indication for the uk. remind you gold is trading right now after that big drop yesterday trying to recover slightly but up 1.3%. pretty powerful smack. from this ross back to that ross and the rest of the team. >> all right. i'll take it. did you see -- you can listen in, ross, but did you see in "the post" about red, the color

red and women that wear red? >> no. >> i printed something out. >> is that what you were laughing about? >> i printed it out for you. far be it for me -- >> are you kidding me? >> what does that say? >> i'm not reading this. >> this was the other day in "the post." >> let me see. >> that's why -- he's giggling the whole time. >> they love red. >> red dress effects, women in red deemed open to sexual advances, study of men shows. joe, it is it is only 6:10 in the morning. >> this was in "the new york post" the other day. there was a huge piece -- >> was it monday when i was gone? >> it was on the 28th. red sends off all these signals in men. they go crazy. that is so red and you look so nice today. that's what i was saying. but this is huffington post. i searched quickly to find "the new york post" piece on red and i didn't know that was the headline, though, that men

think, you know -- >> women in red deemed 0 open for sexual advances. >> what are you doing after the show? >> good morning. >> what are you doing after the show? >> is that why you wore your red tie? >> that is weird. >> that is. coming up, we'll welcome a new -- ♪ we've gone off the reservation with that. a new member of the cnbc family, kelly evans. >> i hope you are not wearing red. >> i spoke with her already. first, though, flowers. this affects me. it does. are being placed on the monkees walk of fame. davy jones. still made appearances. he had a long career even after the monkees and didn't understand why people thought he was so cute. he said he played himself. he was the cute monkee. >> he was the paul mccartney of

the m 0onkees. the episode of "the brady bunch" where davy goes as marcia's prom date, that was the most rerun show in the history of television. >> in the history of television. >> he was bitter they weren't going to be seen as real musicians. >> and back then young girls, you were either a davy girl. now as we head to to break, check out the global market headlines.

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welcome back to "squawk" on this thursday morning. u.s. equity futures at this hour, take a look, we have some nice, green arrows across the board. opening up about 15 points higher. making headlines in the news, gambling revenue in macau, jumping 22% year on year in february. slightly ahead of forecast results, helped by a strong flow of gamblers from mainland china.

now to today's national forecast scott williams joins us from the weather channel. scott? andrew, good morning, everyone. of course we continue to foe can cuss on that severe weather that raked across parts of the midwest tuesday and also yesterday. damage reports around ckansas, missouri, into parts of illinois. and that same storm system is now bringing wet weather into parts of the northeast included in that we're looking at some snowfall for upstate new york and also new england. so winter storm warnings in white from albany toward the boston area. hartford underneath that winter weather advisory. so things are going to be a little messy. of course the first flights out, boston's logan watching out for airport delays, rain mixing in with wet snow. 37 degrees right now in boston. albany 32 degrees looking at snowfall. 35 for you in syracuse now. around the immediate new york city all rain, wet weather.

temperatures well above freezing here in new york city. currently 38 degrees central park. so we'll continue to find some low clouds, some drizzle around new york city but that snowfall will remain into upstate new york and also parts of new england, boston, you'll contend with the windy conditions as well as snowfall lingering into the overnight hours. friday a bit of a break but another storm system will be moving in for saturday bringing wet weather. how much snow are we looking at? boston, 3 to 5 inches. higher amounts towards the north and west. concord about 6 to 10 before all is said and done. that air travel forecast watching out for considerable airport delays around boston, new york city, watching outs for airport delays. so just pack patience if you do have some travel plans out there. and then our next stage will be set for severe weather moving into up friday afternoon for the ohio river valley. becky, back to you. >> all right, scott, thank you very much.

we have a busy day for economic numbers coming in both here and abroad. our newest reporter kelly evans joins us on set to talk about it. first of all, welcome to cnbc. >> i am glad to be making my debut on "squawk." >> we're glad to have you. >> i talked to her about it already. >> this is huge. >> you don't look nervous. someone asked you about -- >> before the presidential debate. you don't look nervous. >> no need to be nervous but the debut on "squawk." >> i should have been dripping with sweat, shaking in the chair. >> joe was my -- the first time i ever came on -- >> careful. >> it was over his shoulder. >> really? >> and i was going -- >> he was. he said, you're from the waul strl street journal. you must be a commie. >> there is a big chinese ball. i think the reporters at the "wall street journal" are indistinguishable from the reporters at the "new york times." they're mainstream media.

but then were you reading a teleprompter. >> i was reading a teleprompter live for the first time ever. >> and she stopped and messed something up and went, blah, blah, blah and started over a. new person if they mess up usually freeze. she didn't. i said she has a lot of -- >> a star was born. >> just like now. >> exactly. so welcome, kelly. we're pleased to have you here. and i know you want to look through some of the numbers today. the jobless claims is the most important. >> i'm thrilled to be on when we get all of this economic data. the jobless claims report out at 8:30. i get excite bod about this stu. jobless claims tell the equity story and then at the same time you still see -- you look at the ten year and you see that lagging behind. you don't see the same enthusiasm for a variety of reasons. but it points to pressure building there and people are continuing to wait and see whether 2012 will be the same story as 2011, 2010 to some degree where we start out

strong, risk on, oil prices, ten year inching up and whether it's february or april or whatever, we seem to put in the highs for the year risk sentiment takes a turn for the worse and it's one of the summer sell-offs and into the fall again. i think that's the biggest question. i'm sorry. >> is that a question mark or a prognostication? >> i would err on the side of prognostication. i will take the other side of joe's 30%. >> we're already there. >> you're taking your 30% off the table? >> no. we already hit it. >> from october. >> he's already adjusting the goal post. >> did he send this to you, the two charts that correlate the best with in-trade prices for obama's re-election. >> the jobless claims is the best proxy for the stock market. it's amazing for the stock market as well.

that's the two that he sent. one is the jobless claims and the other is jobless claims charted against the s&p 500. there's a high correlation. we have come to a lot of attention for these volatile numbers, the jobless claims. they may be the best indicator. >> they really are. i would ask if you had to go to a desert island what would it be? most of them say jobless claims and it's so funny because it's a sim is am series. the labor department measures it. it's hard to react because it is so volatile and 7,000 doesn't mean a lot. you mean versus the monthly jobs report? >> right. >> the unemployment rate is useful but the payroll figures are volatile and they are so revised and you have to get a long enough track record going. jobless claims is pretty reliable. >> we are always talking about seasonal things. >> that's why it's hard to react and that could be the case again this week. >> we always say the week of the big mother of all numbers -- >> the week of the 12th.

>> the claims numbers are not in there anyway. you can't decide anything about the claims number. >> this week's numbers -- >> will be in for next week. >> the jobs report isn't out until next friday because it's a shorter start. >> yesterday ben bernanke on capitol hill started making some comments about how the unemployment picture, it surprised the fed how quickly it's improved. and you wouldn't expect or they wouldn't expect to see much more improvement before the end of the year. >> it is a lagging indicator. they finally changed their unemployment rate. now they have to turn around and say, great, now it's falling quicker than we expected. it might have looked better. it's clear you can't put a lot of stock into what they expect happening with the economy. their forecasts don't amount to much over time. >> we should not put that much faith in 2014 forecast for rates

being at these low levels. >> that's just a case of trying to use language to get a little more easing into the market or give themselves a few more options but no one actually thinks that it means -- >> that's what fisher said. >> bullard, too. >> right? >> and yesterday i asked him when does the participation rate ever come back to haunt these numbers because got it so quickly. do you think they will come back? >> there's a strong demographic story. it was actually higher than demographics would have suggested. there's a little bit of a catch-up going. so there's reason to believe what you are seeing in the numbers is probably going to stay. the participation rate by the time you go from sort of the up to 55 into the 50s and 60s drops by half. from 80% to 40%. it's a much more powerful move than a lot of what's happening with, you know, in terms of coming out of the labor force.

>> from 9.3 to 8.3 happened so quickly. surprisingly you would think the next point is much harder. >> i think that's a fair point. >> i actually think it may go up higher. who knows, though. >> i would have never guessed. >> the first couple where we went, those weren't expected, those big drops. we'll get it back next month and they continued. >> and that was right after everyone had raised their forecast saying this thing isn't moving at all and it falls. a good indicator to what everyone thinks is going to happen and do the opposite. >> ism, the first day of the month we get all of the global manufacturing. we've seen china showing a little bit of improvement but not as much as expected after the chinese new year. we've seen the european data improving. that indicates growth and the u.s. figures are out at 10:00. we'll see the tone that is set the first day of the month very often will set the tone for the rest of the month so it is quite

important what the market does today. >> there's a jobs component, o too. >> yeah, the employment index and it's a good way -- this is the sentiment gauge. while we talk about how volatile those monthly payroll numbers can be when you look at the index another way of trying to feel out whether the economy is getting better or not. i'll leave you with my dentist indicator. he said my dentist, earlier this week, three new patients a day and usually he only gets one or two. he says that only happens when people start full time and get their benefits and they come in and start to see me. >> all right. you don't go see the dentist that often, i hope. >> me? i'm going to london in a couple of months. i have to get my teeth taken care of. >> now while you're here. >> all messed up over there, right? you're 5'11" or 06 feet? >> almost. you put on heels and you're over 6 feet. >> this is a good show for you. >> because i'm sitting? >> no, no, because both of us can match up.

we're both over 6 feet. but we're going to have to think about which shows you're going to be good on on the network. you may need to skip a few unless you are sitting on the set. but welcome. it's great. >> i would like to say a star has been born. >> we're claiming you for "squawk" right now, too. >> she was at another place and did very well. we won't need to mention any names. >> very exciting. a lot is happening in the video media space right now. >> but you made it now -- >> i made it. >> you made cnbc "squawk box." and you're coming back at 8:30. >> in our mind. >> i don't know. i think 8:30. maybe to the stock exchange to see the new set. >> excellent. >> the tour. the grand tour. >> a star is born. >> kelly, thank you and we will see you again really soon. >> coming up we'll head to the

futures pit plus, apple co-founder steve wozniak reacting to the company joining that $500 billion market cap club. first -- >> did you write this? >> i did not but i should. happy birthday to justin bieber. we are talking about the monkees. >> he's 18? >> generationally the new version, if you will. he turns 18 today. and there is no fighting, beeier fever, hallmark has created the first of its kind, justin bieber greeting cards. the collection of more than 48 cards, joe, i'm going to get one for you, features innovations including lights and songs from the pop sensation and pop-up displays. i was admitting that i saw the movie on an airplane. i didn't go to a theater. >> the one all about his -- >> and i will admit i was just trying to understand what this whole phenomenon was about. >> if i had his cards like that on my desk i could get arrested. honestly, you would look at me like -- >> we're going to put some on your desk later today and try to

take videos. >> we just missed your birthday. disappointing. >> i don't know the whole bee beaver -- >> bieber. >> i said bieber. >> i thought you said beaver. >> let's take a quick break and before we do that a look at yesterday's winners and losers. coming back with more "squawk." carfirmation. only hertz gives you a carfirmation. hey. this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz.

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we were just driving along, comin' back from the lake, and all of a sudden, ka-plam. it blindsided us. what is it? our college savings account. how do you think it happened? not sure. i think something we bought a while ago turned out to be something else, annnnnd, i remember a lot of other stuff in there had the word "aggressive" in it. is everyone okay? well, now, yeah. who knows later. ♪

♪ take the last train and i'll meet you at the station ♪ ♪ you can be here by 4:30 because i've made your reservation ♪ good morning and welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. davy jones passed away suddenly. this is the first big hit of the monkees. a huge songwriting team back in the '60s and '70s. this is not davy singing. >> did they write of their own stuff? i know they played their own instruments. >> it was campi, the sitcom that they had, but it was a huge hit

when it came out. pretty fuby. it was brilliant, beetles. no, bea it tles, the beat, and then for these guys monkees with the guitar and it was manufacturing and it worked as a while as a cultural phenomenon. it's weird, our normal director, is paul, and we have dave jones directing today. weird. anyway, we'll talk about davy more. making headlines, hong kong airlines has threatened to cancel an aircraft order with airb airbus. the reason growing tensions between china and the european union over the block's emissions trading scheme. ireland may need to make further changes to its budget this year if the economy continues to deteriorate. ireland is implementing $5.1 billion in tax hikes and spending cuts. did you see that? that was truly -- did you see our vo that we had?

it was a rainbow. >> ireland. there's always a pot of gold at the end of the rainbow. >> that's unnecessary wallpaper. it is necessary because it's tv. >> what would you prefer? >> see, when i look at that, though -- do you think of ireland? >> the castle i saw. >> i want to be on the streets in a pub or something. >> there it is. >> it's hard to match video with business news stories a lot of times. there would be printing presses or legislative bodies. >> lucky charms. >> lucky charms. >> they'd be eating lucky charms. every time we do a segment we should have a box of lucky charms. >> or the leprechaun. remember that guy? he was nasty. >> that was jennifer aniston's big breakout movie. >> was it really? a check on the markets this morning. the futures at this point after a down day for the markets yesterday are indicated higher. you see the dow futures up by 21 points. up by 1.8. also, if you take a look at oil

prices this morning, they're back up after dropping off pretty significant isly during the trading day. at one point oil prices were back down around $105. ten-year note, obviously the bond market will pay a lot of attention to the jobless claims today. the weekly jobless claims are expected to come in at 351,000 after dropping to 335,000 yesterday. the yield right now on the ten year just above 2% at 2.009%. and the dollar is mixed today. you're going to see it's down against the yen. up against both the euro and the swiss franc. the euro trading at 1.332 after getting up above 1.34 yesterday. also, gold prices. let's take a look. they are up about $3.50 after a significant drop. >> joining us now from the cme,

it's great to see you this morning. what are you looking at? how much of your conversation, thinking, is about what bernanke just said and how much is it -- well, i don't know. i'll let you take it. what's on your mind? >> i'll be honest with you. what you hit on with justin bieber and dave y jones is probably primarily what's going on down here. what bernanke said the other day, yesterday, it's irrelevant. there's so much complacency in the trading market that nothing is affecting anything going on down here, even the precipitous drop in gold and silver, it was just an overbought situation. it's going to correct itself probably today, tomorrow. it's going to stabilize. the same with oil. we saw the $2 sell-off. now we're going to probably head back up towards $110, $111 a barrel. the operative word down here is complacency. >> why? i feel it, too, but why so complacent? there does seem to be a sense that there's not a lot of -- we

have a lot 0 of numbers coming out today but it doesn't feel like things are moving on anything right now. >> no, not at all. what we've seen over the last four, six, eight weeks is regardless of the news, and the economic news has been for the most part pretty good, but regardless of what we've seen we're kind of in this holding pattern in the market and what we're looking at is volatility is at two three-year lows which i don't under. i like to trade volatility. i'd be a buyer. when we looked at the index last week it hit in the mid-16 level which is the first time i think since 2008 or 2009. i don't get it. all the news that's been coming out is good and right now we're just in this holding, grinding pattern, slow, low volume grinding pattern. and until something really significant impacts the marketplace, whether it comes out of the eu or greece or whatever, we're just going to

kind of stick right here. >> i don't know if that's good for ratings, scott. we need to actually have is a sense here of what's going on. but real quick, you said we're in a holding pattern and we're waiting for something. what's the one thing you worry about or are hoping for? >> what i worry about really is the ltro and really how what's going on in the eu will affect us here. if this blows up in the next three to six months, we can see, you know, the dollar versus the euro really, really climb, and that, i think, could affect the commodity market here which, in turn, will affect our stock market. people are looking for the 10% to 15% pullback in the s&p if all of that happens. and i could probably see that happening going into the summer months. but this complacency right now is what's going on here, the volume, like i said, is just drastically low, and there's almost this sense of blase trading on the floor right now that people are waiting for something, something impactful

to happen. even what bernanke said the other day, it just didn't matter right now. sorry about the ratings, guys, but you want the honest take of what's going on from the floor right now, that's what's going on down here. >> scott, i'll take it. i will say just understanding that sentiment and that's the way people are thinking actually was an indication into itself. we will talk to you very, very soon. >> if you have comments or questions, our viewers on davy jones versus justin bieber, e-mail us here at "squawk." coming up -- "pleasant valley sunday." you knew this? >> no. >> companies -- >> i don't know that one. >> companies with $500 billion market cap, apple is the latest. there have been some in the past long ago. ge was one. cisco was one. distant memory. an exclusive conversation with co-founder steve wozniak, the

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welcome back, everybody. those u.s. equity futures are improving as we go through the morning. right now the dow futures up by 30 points. this is a turnaround from early this morning when they were indicated lower. and it comes after a day yesterday when the markets did close down, down by 53 points yesterday. >> and now a cnbc exclusive steve wozniak reacting to apple hitting $500 billion in market cap just a short time ago. brian sullivan sat down with the apple co-founder at the ypo

global leadership conference in singapore. wozniak was the keynote speaker there. cnbc and the young president's organization have launched a broad new partnership so could the woz ever have imagined that apple, a company he and steve jobs co-founded in jobs' garage, would ever get into that elite half a trillion dollar club? >> $500 billion market, did you ever believe that apple could reach half a trillion dollars in market cap? >> i have to be honest, i'm an engineer. i don't keep track of -- i don't want to worry about money and amounts. >> reporter: you are a stockholder and you are still an honorary employee of the company. >> i am so honored it is the largest cap market, market cap, whatever you say, in the world. yeah, it's a huge company and it's a lot of companies in one. every one is so excellent. the retail stores is a company. the itunes music is a company. the ipods are a company. the ipad is a huge company.

and we still have computers. >> more from the conversation with wozniak in the next hour including whether he thinks apple shares could hit $1,000. coming up, we're going to head to the chairs and "squawk" on the stories that are grabbing our attention this morning. that's a bit of a tease. joe is looking for that story right now. don't miss this because we have a lot going on. our guest host is going to be larry and we have another special guest. look at all this stuff for coffee. oh there's tons. french presses, espresso tampers, filters. it can get really complicated. not nearly as complicated as shipping it though. i mean shipping is a hassle. not with priority mail flat rate boxes from the postal service. if it fits it ships, anywhere in the country for a low flat rate. that is easy. best news i've heard all day! i'm soooo amped! i mean not amped. excited. well, sort of amped. really kind of in between. have you ever thought about decaf? do you think that would help? yeah. priority mail flat rate shipping starts at just $5.15, only from the postal service.

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the recovery of the u.s. economy continues. we have seen some positive developments in the labor market. >> this is the effect on markets and ben bernanke not really mentioning further easing, qe3. >> big ben steering clear of stimulus talk certainly caused d commodities to crumble, particularly gold. >> the euro just completely collapsed here. even apple dropped at 10:00 eastern time. we are not really in the chairs but we are in chairs. we're sitting. and we would have -- i don't know, some technical difficulty. we've been talking about in

general news about davy jones and the loss of probably the monkee every girl wanted to grow up, i guess, and marry at some some point. i'm surprised at the people you got weighing in. there was a youtube video of paul mccartney back stage at some point singing "hey, hey, we're the monkeys" walking before he went on here. >> was this -- >> way back when. julian lenon, neil diamond, al roker, speaks to me of my youth. for people in their 50s i think we were, because it was happening, we were kids when it was happening and tv, there were only three channels and maybe one vhf and uhf, so when the monkeys came on you knew and waited for it. >> that point of television. >> really that point of

television and a lot talking about him being the first teen heart throb, he was on broadway and tony nominated for "the artful dodger" and the cast of "oliver" was waiting back stage on "the ed sullivan show" february 9th, 1964, when the beatles first came and appeared on "the ed sullivan show" so weird he was there watching the beatles and said this looks like a pretty good gig for the future, and they ended up doing it. he co-wrote a couple songs but they never got respect really. but he was never ashamed of going a monkey. >> i saw an interview he was bitter about the lack of respect they got from the music industry. he said i've got more gold albums than any of these guys in the rock 'n' roll hall of fame

but i'll never be there. >> and they really played the songs. >> david didn't take up an instrument. >> originally they pretended to play the instruments. >> and then to go on tour and peter took up bass i think and mickey dolan with the drummer and mike niesma was the cap. like this was a great song. ♪ carol king wrote this song. >> i got another story but it's not, i don't want to claim it's nearly as important but it's interesting. >> i don't know whether this is important business wise. >> it's not business but in the business section, a new camera, this is a product called the lytro, it is a camera, this is what the camera looks like. it is a camera that allows you when you take the picture after you've taken the picture, so after i've taken the picture i can refocus where, what's going

on in the picture so if you see the focus was on the little drops of rain, but afterwards you can decide the focus is going to be on the building. >> how does it do that? >> enough information it can keep. >> it's collecting huge amounts of information, all digital information, so people are saying this is going to change photography forever. >> you won't need to be any good. >> and i could focus right here and decide max over there, even though i was focusing on you, i could change the focus after the fact to mac. >> you would never focus on mac. >> he's a good looking guy, a handsome man. >> you'd focus on the hair. why is he so dark. >> there's the lighting. nevermind, take the lighting back. >> you can refocus. and here is the amazing part, history, think about historical photos, news photos where people are taking a picture of one

thing and find out later this is like sci-fi stuff and the things that can be done with this for security purposes, being able to just sort of change the focus after the fact on different faces and individuals. >> jack ruby when he was shooting -- >> will there be another lebowitz or can anybody be great? >> when he was in yosemite i felt like ansel adams. el capitan, i took a picture and sent it back, this is a picture i snapped quickly with my blackberry phone, it looks like something that ansel adams could have taken. >> if you do say so yourself. >> because the quality is so good. i'm a poser and snapped it like this and walked away but the camera phone quality is just unbelievable. >> i still think there will be an opportunity for real

photography. some reason his eye he takes a picture differently. >> any idiot can stand there and take a picture, snap with a cell phone camera, that you shouldn't be able to take. >> pretty cool. >> i'll talk about a picture on the front page of "the no, new york times." the ltro brought down a lot of the yields that we saw in spain and spanish bonds overnight. good news on that front, but the austerity measures are still creating quite a bit of chaos and this is a bank au popular employee confronting one of the protesters who broke the windows. the ltro worked, we're making progress on the issues and there's quite a bit of social unrest. >> if it had been taken with the

lytro camera we could focus on the little man in the background or get a better shot, interesting stuff. >> when we come back we'll be in a new york state of mind, former governor george pataki is our guest host for the next two hours, we'll talk politics, business and the economy and advertising an economy, martin sorrell, wpp. >> tomorrow our guest host former honeywell chairman and ceo and tech investment from netscape to facebook, we have a special extended interview with venture capitalist mark andriessen at 6:00 a.m. eastern tomorrow.

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[ translated into spanish ] "squawk box" the liesman edition. >> das, that's the only thing i know. i'm becky quick along with andrew ross sorkin and we'll go to steve liesman in a moment and

hear what he's doing in russia. foreclosures represented 27% of all sales in 2011. in 2005 foreclosures made up less than 1% of all sales. investors in greece are pushing hard to get payouts on default swaps. the international dririves association is meeting this morning to try to determine whether the country's debt restructuring qualifies for a payout. passengers on the disability "costa allegra" cruise ship are finally on land. the ship has been without power for three days following an on board power. futures are indicated slightly higher, the dow futures up by about 33 points, building steadily through the morning. >> our guest host, led new york state for three terms, former governor george pataki is with

us, now a law firm, chadborn and park and the organization "no american debt." governor good to see you. >> good morning, gentlemen, nice to be with you. >> which is true, that this republican, what would you call it, i guess it would just be nice to say the campaign -- >> slugfest. >> it makes the eventual candidate stronger so it's okay and what we should be expect are og detrimental -- >> i hate spin. that's just spin. i think this campaign has really hurt the republican party and republican candidates. you know, we are focusing on the primary, as though after the primary there's going to be a general election. president obama has been running in the general election for the last year, so he can be above the fray, hammering our candidates, hammering our policies and beliefs while our guys are in the mud killing each other. it has been unfortunate for the party, i don't think it makes us stronger, i think it's weakened

us. having said this, this president is so bad and so weak i think we have an excellent chance to beat him this november. >> i was trying to figure it out, newt got mad because of -- >> what's different in the primaries? >> it's a two-fer pac money? used to be if you weren't doing well your fund-raising dried up. >> if you didn't win. >> if you didn't win so he's lost a few but got 10 million and goes crazy with ads but romney went crazy on him with the negative ads. >> that's still the case. whatever money either candidate gets directly or in the super pac they use to pour on the head of their leading opponent. it's really tragic. part of it is money but also the fact that our candidates have lost sight of the ball which is president obama. republicans overwhelmingly understand we need to change the leadership. >> if you want to campaign, governor, if you want to get in

the position of being the nominee -- >> i understand that's clearly what everybody thinks you have to bash your opponent during the course of the primary. i think it's not impossible. maybe i'm just a dreamer, but if you had focused on what this president has done to the country and will do to the country and what you would do differently to give people better lives if you get the opportunity to lead this country, i think republicans could have said all right maybe he didn't trash the other guy and nothing wrong with the other guy -- >> mitt romney started out trying to do that, and standing -- >> becky you tell me what mitt was running on, three big ideas to change the country. >> he wouldn't acknowledge his other republican contenders. >> here i am, i'm mitt romney as opposed to -- >> i'm mitt romney and i'm running against the president of the united states and here's what i offer that he doesn't, and he's changed that message, i think he's come more to the right because he feels like he's had to, to take on the other republicans in the field. >> well i think to the extent

i'll be critical of our candidates and they're all out there and i'm not so i give them all tremendous credit, to the extent i'm critical is none of them, and particularly i haven't seen mitt paint a big vision for america. it's one thing to be out there saying i'll ignore my opponents. that's not the point. the point is you want to have ideas, concepts, things you're going to do to make this a better country, to solve the problems we have. americans are desperate for a leader who is going to put aside the crap, understand what the problems are, and suggest solutions that they can understand and that they believe in. i don't think that is that difficult to do. >> you don't think they want romney's proposed tax plan? >> i read the 59-point program. >> one for each state. >> totally incomprehensible, to someone who has lived this for 20 years. >> are there members of the party that are calling people like sheldon addelson and others

who have the money and saying stop this, stop the madness. we got to stop hurting each other. you have to pull -- you cannot continue this way. >> i don't know that's the case because i think where we are right now is too many of the activists and leaders in my party have lost sight of obama and focused on beating -- supporting their guy and beating the other one. >> no old wise man making calls saying we got to get together. >> we got a problem. i can't speak for the party but i don't think there is that person out there. >> i still don't know if this ends up being -- things move so quickly and once a nominee -- >> sure. i still believe through all the damage that's been done to our party and to our candidates by this process i still think we have a chance to win. >> somebody said the private equity if it was ever a negative for mitt romney, that that's been dealt with, to some extent and the far right came to romney's defense against some of the pseudorepublicans attacking

the private -- >> i think there's a difference between it being revealed or talked about during the course of a debate and $1 billion in tv ads being dumped on your head in october, so to say it's settled i think is something. >> i wish it were true. i hope it's true. >> but wishing that the discourse had been on a higher level is like you know it's like birds got to fly, fish got to swim. is there any way this wouldn't have happened and won't happen every time? >> sure. >> how? unless there was a presumptive front-runner who united the party. >> i hate when republicans continually look backward and bring up ronald reagan, but he was running on a vision and he had a tough campaign. he had a bitter battle. you don't remember him trashing his opponent. you remember his vision. >> but the party itself went through some, you know, with the attacking george h.w. bush. >> you're always going to have

attacks and give and take. >> once it's settled everybody comes together. >> i that i that will be the case. >> there was a "usa today" poll i mentioned it a few times, 60% of republicans say they're not concerned about the spectacle and that when push comes to shove it will be -- >> joe that's not the point. the republicans will rally behind our candidate, all of us, we understand the desperate need to replace obama with someone who has the right vision for the future of america but to win the election you need to get the lion's share of the independent vote. you need to get some of the conservative democrats to vote for you and that's my concern, is that they are dissatisfied with obama, they are disaffected -- supporters who voted for him the last time or didn't vote for him the last time they're looking at this saying eww, i don't know if i'll vote for the republican party. >> you're appealing to the independents and not ready to say romney has the best chance there. >> i would say romney has the

best chance but i'm not at this point prepared to -- >> what time is this, 7:08. >> -- prepared to endorse anybody. >> you'll be on until 9:00, can you endorse anybody? >> i hadn't thought about it. >> do you think santorum could win over independents to the same extent romney? >> i don't think so but i don't think he's unelectable. >> you can do it, it's okay. >> no, i'm not going to denigrate any of our party's candidates. if we nominated -- >> we have to go to break. >> if we nominated attila the hun, i would campaign for him. >> governor pataki is with us for the rest of the show. >> the dow is backing away from 13,000 after testimony from fed chief ben bernanke, by the way bernanke will be back on the hill today. joining us with more is cnbc contributor jeff kilburg of the

treasurycurve.com, live from the cme in chicago and jeff you watched what happened yesterday with bernanke on the hill and the market seemed disappointed that he didn't specifically talk about qe or more qe coming down the pike. that is a short term view for the market. doesn't that mean maybe the economy is looking better than expected? >> good morning, becky. it's a great point. ben bernanke a lot of people took away from what he said or didn't say -- >> who? >> bernanke. i like to say ber-nak-ee, in chicago. i saw the rickster alluded to it yesterday by the finger. we had 35,000 combed through and it was a misclick, not a fat finger. as the viewers know as the contracts and the treasuries roll from the march to the june it was an inadvertent misclick of a spread into the futures and

that set off a death charge into the market and brought the precious metal complex down to the fourth worst loss ever. >> so today, do you expect any repeat or this was simply a fat finger trade that affected and threw things off, this was not bernanke talking about the economy, maybe looking a little better and the need for qe3 getting pushed further down the line? >> well i'm in the camp it was an al gogorythmic move. we would have seen the ten-year note move 30 to 40 basis points, not eight or nine. i think yesterday was an anomaly. >> jobless claims coming out at 8:30 this morning. jeff if that number is around 351, no huge surprise but what happens if the number is closer to 400,000 or quite a bit lower? >> well i think volatility is

here. let's rewind to december 21st when the ecb came out with the initial ltro. we have not seen volatility in the markets in quite some time. yesterday was a feral environment, to see the volatility in the precious metals and treasury complex. we did not see it spill over to the s&p so the equities are setting up for volatility as everyone is expecting a 5% to 7% retracement. >> jeff, thank you very much for joining us today. >> all right, becky, take care. >> you, too. up next on "squawk box" what the state of the advertising industry is telling bus the overall economy. wpp's ceo sir martin sorrell will sit down with us. and later pain at the pump. senator david vit we are his plan to fight high gasoline prices. "squawk box" will be right back. it's kind of hard to make decisions by yourself all of a sudden, when you have been making them with somebody else for 35 years.

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we're back. the world's largest advertising agency saw sales jump 4% in 2011 with the presidential election and the olympics said to give it a boost. sir martin sorrell is the ceo of wpp. we saw each other last evening, and it's nice to see you're awake, sir martin. >> i've been up all night. >> he must have been because he had earnings.

we had dinner together and then -- >> was he? >> was he what? martin i don't know if you can see what joe is doing. >> were you tying one on, because andrew was? >> i'm actually in my pajamas, joe. >> pajama bottoms. >> appearances can be deceiving. >> people are pretty happy, i want to talk about this coming year, this is an olympic year, it does make all numbers look better. my question is, you're agreeing with that i think. >> yes, i think that's right. so we did about 6% on the top line, like for like this year we're budgeting or 5% to 6%, depending on which measure you look at. this year we're looking at 4% but the patent of growth, joe, is similar so it's asia, latin america, africa, central europe

driving the business, and digitally functional digital plus media investment planning and buying is strong so the patent is the same but at a slightly lower rate to reflect, you know, the issues in europe, and the other issue i think that worries success what happens in the u.s., joe, in 2013, after the election is the government, if it's a real -- i know you get upset if i try to predict what's going to happen in the election. >> andrew's talking to you. i'm the one that gets upset when you tell me that the president's a shoo-in for re-election. andrew will not get upset when you say that. >> i never said a shoo-in. i said the probability is probably. but if you have a dead-locked congress, are you going to deal with the u.s. deficit issue and that worries me about 2013.

2012 has the olympics. it has the election itself. >> right. >> and last but not least it has these football championships in central and eastern europe which is the third event of some major consequence to the advertising industry. that adds about 1% usually, that qu quadrennial factors add 1% to global growth so we feel pretty good about 2012, less good about 2012-2011, but the u.s., joe, you've been discussing this for the last with andrew and becky the last two or three months, the u.s. feels much better in front of the election, whether it will feel much better after the election is another question. >> sir smartin, i was looking a the numbers you put out, you spent $400 million in 2000 or you're planning to, spent $400 million with facebook in 2012. >> yes. >> double what you spent last year. >> yes. >> you spent $1.6 billion with

google last year. >> right. >> how much will you spend with google next year? >> well, for 2012 we're targeting about $2 billion, maybe even a little bit north of that, and with facebook, we'd like to double up from 200 million to 400 million. with facebook because of our investment and buddy media, the platform for facebook and works with ten of the top ten advisers work through buddy medias aa platform inter facebook, it gives us an advantage of working with clients. the answer to your question, andrew and joe, is that we're going to see i think a significant increase in our engagement with facebook, but not at the level yet that we see with google. >> but do you see a day, and this goes to valuation on whatever you think this facebook ipo is supposed to be. >> yes. >> do you see a day where you're spending the exact same amount

of money or within the same range the kind of money that you're spending with google? >> well the answer head-on to that is no and the reason is that google has this five-legged stool. it has obviously search. it has display. it has video. it has social, and it has the general -- the mobile application that it will get through its acquisition of motorola. the mobile acquisition came through so we'll see mobile as a fifth leg. that makes google extremely powerful. facebook, of course, interreacts with google on search. it will do, i think, in the course on display and mobile, but google is much broader in terms of its engagement with us and our clients. so i think -- >> if you're only spending a fraction of the money with facebook that you'll be spending with google does it make sense for facebook to be valued looks

like where people say at half of the value of google? the math would not add. >> well, i mean, somebody said to me many years ago is facebook, is it worth $a15 billion? i said no. more for me. what do i know, andrew? the spending on facebook may gather further momentum, if we go from say 200 to 400 and on up, it may gain further momentum but at the moment, our penetration or google's penetration of our client base is far greater than facebook. now come back to your point the issue about facebook from my perspective is that facebook is a social network. that's what it's called, and what it is, it is about social interactions, social communication between people. if you interrupt that social communication with commercial messages, if you try to monetize it, as they insist on calling it, is it as potent as search? or indeed as display, or indeed

as mobile? i don't think so, and if you interrupt a social conversation with a commercial message, is it effective? does it upset people? does it interrupt that interaction, and devalue it. i think you have to be very careful the extent to which you monetize a social network. >> okay, sir martin, a very big insight both on wpp but also on where this facebook ipo may be going. we appreciate your time this morning. >> you should be in advertising, joe. >> i don't consider necessarily the uk part of europe but you still see that speech in berlin, that did it for you. you haven't seen anything since then, maybe the nobel peace prize but that was enough for the european. it makes sense, if you run a socialist country, you would love, obviously think this person is going to be reelected, right? >> no, no, no. >> that's kind of it. the euro, he'd win 90% of the

euro vote. we wouldn't need an election if you guys were voting. >> it's got nothing to do with that, just a view and it's a foreigner's view, you're right, joe, of what may or may not happen, just an assessment of the odds. >> but you said this six months ago before the economy started improving. >> i did. >> what did you base it on? >> just i guess a visceral feeling. >> that's the visceral feeling in front of the pillars in berlin i'm talking about, a hope in change. >> no, no, no, what it is we have a significant public affairs and public relations business and a number of the people that work in that business have i think a very good feel for what goes on politically in this country. they're not englishmen or british people like me, joe. these are americans, red-blooded americans who understand what's going on in america. >> all right. >> and i'm only just giving you their view or trying to give you their view.

>> in-trade is a great indicator and in rchb tra-trade is at 60% borne out to be true as far as in-trade is concerned. we'll know shortly which is amazing. time flies. >> there's a long time to go yet, a lot of things that can happen but that's the way it's going. the deadlock,ed deadlock, the gridlock is the thing i really worry about because if we don't solve the deficit issue, i think we have problems. >> then we will end up like -- thank you. >> then you will. >> right, all right. >> okay. >> you want me to say good-bye. ? >> you could say good-bye, i tried to say good-bye because i love sir martin but you continue -- >> he referenced, we couldn't just leave that out there, hanging? right, sir martin? it's more fun when he's in here. >> he could show off his pajama pants. >> a little tmi. thank you, martin. from russia with love, we sent liesman, he produced the opening

for us all in russian. liesman speaks russian, there is a shock because he is indeed. we sent him to siberia for a story he could cover, the rising russian economy, where russia may be a safe bet when it comes to investing. "squawk box" is coming back. >> follow "squawk" on twitter. becky's handle, andrew's handle, and the show @squawkcnbc, updates, guest info and share your thoughts and submit questions. "squawk box" on cnbc, and twitter. cial was founded back in 1894, he helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship.

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welcome back to "squawk." u.s. automaker also release

february sales figures later today expected to reflect the economy, factoring out february's extra day for leap year they say sales would have still been higher. urban outfitters is being sued by the navajo native american tribe, accusing them of trademark violations using its names on various products. urban outfitters sells more than 20 items under the navajo name and could apple's stock price hit $1,000 a share? listen to what co-founder steve wozniak told brian sullivan at the ypo global leader summit in singapore. >> apple has a large room for growth. people talk about thousand dollar stock price. at first you want to doubt it but i actually believe it and i don't follow stock markets. >> 1,000 bucks you think it's possible. >> apple has that much growth, talking like apple tv that works

with the great, great companies and products all in the same sphere. it's not like a side project. we're going to start a tv company, no, we're going to start tv within the whole apple world. assuming if that's what we're going to, i don't know. >> less than 500 bucks away, shares of apple right now, 545, take a look right there. it could happen. i don't know. but we've seen this before, joe, talked about this. cisco looked like it was on the roller coaster ride and then turned around. back to you, becks. >> andrew, thank you very much. tlr there have been a lot of doubters along the way. super tuesday is next week taken is expected to play a vital role in determining the gop nominee. joining us is the cnbc contributor en red rendell, for governor of pennsylvania and our guest this morning is former governor of new york george pataki. thank you for joining us this morning. >> my pleasure.

>> we have been trying to figure out the role the economy plays eventually in this election. my question to you is how big of a role is the economy and the unemployment rate on november's elections and the president's chances of being reelected? >> it hasn't been much of a factor in the primary battles, because i don't think staked out a credible position of it about turning it around but i think the state of the economy come october 1st in the last four or five weeks of the campaign is going to be almost the determining factor in where it goes. i warn all my democratic friends don't take too much consolation from the problems the republicans are having because after the convention there's a reset and for the nine, ten weeks people focus on all of the challenges the country is facing and if the economy is not good in october, it's a real problem still for us. >> what's the biggest threat to the democratic party as we get into this election? would it be tougher to run against mitt romney, against santorum or against a candidate who has yet to be named?

>> well, you'd have to tell me who the candidate yet to be named is. >> say jeb bush. >> jeb bush would be a formidable candidate if he had a different last nail. i'm not sure the country is ready to vote for another bush at this moment. but let's take the practicalities coming from the current field. i think mitt romney although he's a damaged candidate from what i thought he would be is still a difficult candidate for us because the election in swing states is now drmd by the suburbs, where you've got moderate republicans, independents and conservative democrats all bunched together, and mitt romney scares that group less than any other republican candidate. if they're dissatisfied with obama and they want to cast a safe vote, mitt romney is still the safe candidate, although his campaigning has been so inept, except for the debates where i think he's done well. his campaigning has been so inept he's eroding some of that

security feeling. >> governor pataki is with us and joined us at the top of the hour, governor rendell. >> well he would be the strongest candidate. >> governor pataki could you lay out your concern about the republicans going after each other and how this weakens -- >> i agree with what ed said which is not uncommon, we often agree, and i think he did say that we've been bloodied over the course of this campaign and we have. i think the most important thing that he said is that none of the republicans have laid out an economic plan that the american people can identify with and say, yes, this is going to help, and i think that's one of the reasons we've been mired and killing each other and one of the reasons we haven't been as effective as we should be in going after president owe ba marx because he has portrayed his vision and i can't stand that vision, of a divisive america in the throes of depression with an ex-ploisive

society. we have not woportrayed what we would do differently. i think whoever the nominee is, if i had to bet, it would be mitt romney, if we can do that i think there's an excellent chance regardless of the damage that's already been done. >> governor rendell, you heard, that's governor pataki's version of the obama campaign, but if that is indeed, let's just assume that is what he's doing with the divisive sort of the politics of envy, pretty smart, a guy pays 15%, 14% in taxes, boarding school, you got the 1%, 99% argument. maybe it's a smart campaign but do you feel good about the type of campaign that the president re-election campaign he's running? >> well, i think the president found his voice since his jobs speech in november and look, if some of this class warfare, i don't believe so. it's a question of tone. i'm a believer that we've got to all sacrifice if we're going to

get this economy turned around, entitlement reform, serious entitlement reform and got to raise revenue and someone on the republican side has to say yeah if we're going to rebuild the n infrom structure and remain economically competitive we have to invest in growth. every company does it and we have to do it as well. >> ed, you are very good at this. joe asked you about the divisiveness and the nature of obama's campaign and you immediately turn it to the way the republicans have done something. you are very good at this, but you didn't answer the question and i think it is class warfare. >> i don't think it is. >> maybe it's smart politics but it's the wrong thing for the country in the long run. >> but again, i think you're focusing on tone more than the message itself. the message itself is that all of us have to sacrifice if we're going to turn the economy around, and again that means

everybody. it means our seniors. it means people who are in manufacturing, but it also means that the richest americans have to go back to at the very least in my judgment the clinton tax rates and it's interesting, guys, you hear all the time, not from governor pataki, but you hear all the time you can't raise taxes on the job creators. it will kill job growth. well in the last 60 years, the top ten years of job growth, the marginal tax rate was 50% or above. the lowest five years of job growth the marginal tax rate was below 39%. >> governor, if you let it go up the bush tax rates all you and most democrats only want it on the high end, which doesn't raise any money. >> no, i think what i would do if i were king of the world what i would do is raise the, go back to the bush tax rates on the top 2% immediately, and then after a two or three-year period to give the economy a little bit of time

to grow, have it go back on everybody else. we all have to sacrifice and if we do it over the next ten years everybody has to pay a little bit more, it should be staggered. >> it's clear, you haven't heard it from pataki we shouldn't raise the marginal rate on the job creators. i don't think we should raise the marginal rate on the job creators. you talk about sacrifice, we have suffered for four years under this president, maybe not some of the people, but the middle class in particular has been hurt under this president. >> george, how do we solve this problem? >> let me tell you how we can solve this problem. we go to the president's own bipartisan commission's recommendation, bowles-simpson. >> i agree. >> they recommend lowering the rate on the top 1%, his commission, they recommend $4 trillion in deficit closing measures and the deficit is the biggest single long-term threat

this country has, and yet because it is not ideological enough to his liking, because it lowers that top marginal rate, obama threw it in the garbage, a brilliant bipartisan recommendation. that's where we should start from. >> governor -- >> i need to make one point, joe. look, how did we do under bill clinton? bill clinton raised the marginal tax rate on so the called job creators and republican said it's recession, jobs will go down. >> you had 32 republican governors cutting taxes across the country. >> 23.5 million new jobs so don't tell me that raising taxes on the top 2% hurts job creation. 23.5 million new jobs, that's a fact, guys, that's a fact. >> i'll ask the question to both of you. >> let me just say that twice as many new jobs were created after the reagan tax cuts in the early '80s, twice as many.

>> ronald raised taxes 11 times as president. that's a fact. >> okay, i asked both governors if there was an up or down -- >> we should be having a series of debates around the country. >> own simpson-bowles today, up or down, country votes, everybody at the table gets to vote. >> overwhelming support for it. overwhelming support. >> do you believe that? >> absolutely. we polled it with our no american debt group because i think the deficit is the biggest single issue, overwhelming support. >> governor rendell you agree with governor pataki? >> the public itself? >> everyone's got to go to the polls. >> the public would vote no because they don't understand it. i think this is the time when we have to have leadership. i agree with george. i think we should do some version of simpson-bowles and do it soon and fast taken comes from leadership. congressional leaders and the president have to agree and that means the republicans have to agree to raise revenue because simpson-bowles raises $1 trillion of revenue.

>> i think republicans -- >> i would like to get your votes on this, both of you agree. >> i think it is a brilliant solution to the most important problem facing our country and it's tragic, but it hit it on the head, where is the leadership? it's the president's commission and he basically threw it away because it didn't suit his ideological agenda. >> governor rendell, during the super committee, the president said hey, this is, you know, this is up to them. and that was when you could have stepped in and massaged both sides and maybe done something. >> remember, guys, in fairness to the president, and i agree there were times when he backed away and he shouldn't have but in fairness to the president, when we were talking about raising the debt ceiling he and boehner reached a preliminary agreement which would have eliminated trillions of dollars. >> we have two sides of that breakdown. >> may opinion is pelosi and her caucus killed it. >> there's blame to go all

around. whoever is president-elect come november, the second week of november should take the congressional leadership and a few key congressmen like a tom coburn, who tells the truth, bring them to a place like y and do some version of simpson and bowles if it takes two weeks locking everybody up in a room because we'll have a window after the election of about four months when we can do the tough, difficult things. >> you think the country will take the hits? >> absolutely people are willing to take the hits. i think we can get this done. it is a bipartisan solution that both sides can live with. they're not perfectly happy with it, but if you understand the magnitude of the debt crisis facing this country, i think the american people would support it, and i think you could get politicians from both parties to support this. >> during the commercial, it will cost potentially less than $3 trillion until you think you find $3 trillion on the other

side to come from. >> it's incumbent on to us do this and people like george and i, former leaders, have to stand up, republicans, the democrats alike, shoulder to shoulder and support them if they do this and support them and support them in advance and say let's get it done. this is four months where there's no election in the horizon, get it done for the country. it's so important. >> i completely agree. >> we'll have both of you back to talk about your support of simpson-bowles and what needs to happen. governor rendell, thank you very much for your time today. >> have fun, george, these are a good group of guys. >> they sure are, ed. thank you. >> we'll bring you back very soon to talk about this, all right, governor? >> thanks. >> thank you. one thing before we go, there is some news out on the wires this morning, markets had been waiting for a decision from the international swaps and derivatives association to try and find out a ruling as to whether greece's bond restructuring constitutes a so-called credit event. that ruling is just in from the isda they say there is no credit

event for the greek cdss because of what happened with the structuring. there was an expectation it would be declared a credit event and that's why some of the cost of greek bonds for ensuring some of them had been creeping higher. the ruling comes out this is not something that triggered a credit event. >> amazing. >> i think a lot of people didn't think it was. >> it wasn't roll tear. >> 20 cents on the dollar, not -- >> you knew they were trying to right this whole thing around. >> see no evil, near evil. >> the other 20% will be forced into this not voluntary but the ruling is this is not officially something that's triggered. >> you can appeal, it's a 15-member panel, it's closed door no, transcript, no nothing. >> i think people were worried if it were declared is the money there, worried about another -- so we're afraid. why pay any money for the ucs?

>> the ruling is out and it was that there was no event that triggered this. when we come back we'll be joined from russia with love by steve liesman who is taking a look at the risks and rewards when it comes to investing there. meantime take a look at the futures this morning, we have been climbing throughout the morning and right now you'll see those dow futures, step back just a bit up about 25 points right now. s&p futures higher by 2.3 points. "squawk box" will be right back. carfirmation. only hertz gives you a carfirmation. hey. this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz.

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♪ russia might seem like an unstable to invest unless you consider the rest of europe struggling with its own debt crisis but investor confidence in russia recently waned thanks to political uncertainty. steve liesman is in moscow ahead of this week's presidential elections, where vladimir putin is expected to take back the presidency. >> reporter: protesters in the streets, a level of government corruption even the president has said is out of control. but still, despite troubles as deep and severe as its winters, russia's overall economic position looks better than developed european nations teetering on the verge of recession.

russia just completed two back-to-back years of growth above 4%. its 6% unemployment rate is among the lowest on the concontinent and 4% inflation rate is a fraction of the hyperinflation that plagued the country in the '90s. with economic results like that, russia's powerful leader vladimir putin is expected to win back the presidency in this weekend's election. many russians still praise him for leading them out of the chaos that followed the breakup of the soviet union but some russians are not so sure. they want to loosen up on the reins of power. challenge action to the political system are unlikely to lead to a russian spring, the long-term outlook analysts say is less certain. >> i have very real concerns about what happens, maybe not three years out but five to ten years out, or if the price of oil drops below 100 bucks a barrel. >> reporter: with the price of oil still high, foreign currency keeps pouring into russia, last reported a $24 billion trade

surplus. but the problems are legion, a country that sports a third of all of europe's billionaires has yet to find a way to offer basic services to millions of its people, many of whom live in poverty. >> steve's going to be reporting from moscow all day, we're having technical difficulties right now, hopefully we can get him on the air a bit later, i think if we said putin will absolutely take back the presidency he would have been on air. i don't know, there's some technical issues, you think those would have been more easily fixed if we said he's actually always been president for -- do you think? no, they don't -- >> no. >> not like that anymore. >> steve, he can speak russian to the people over there to get things fixed. >> probably is trying. >> having been there for seven years and pulitzer. >> moscow bureau chief for the "wall street journal." >> he can get stuff done. you bribe people, money. >> we'll hopefully get steve on

in a little bit. still to come this morning he is a squawk market master, stanford university professor of economics and former government official, john taylor has played both washington and wall street and he's our next guest in the next hour of "squawk box." stay right here. >> you're watching "squawk box" where business leaders, investors and politicians turn to get the first word on the markets. it's right here on cnbc. optionsxpress, where you can trade your favorite products,

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welcome back, everybody. we have a lot going on this morning, breaking news coming up on the jobs front, it's very important and the markets will be watching that closely when we get the weekly jobless claims. expectation is for a drop, sorry, a gain to 351,000 after a huge drop last week to 335,000. we have that plus two great interviews, john taylor, former treasury official and squawk market master will tell us where the market is headed. later waging war against $5 gasoline, senator david vitter joins us with his battle plan. "squawk box" will be right back. tomorrow, entrepreneur,